Greek Debt Swap Deal Essential

The head of the Institute for International Finance (IIF) is the leading negotiator for Greek bondholders in the talks now going on in Europe to reduce the amount of Greek debt by about euro100 billion. The process is stalled over the coupon on the new bonds. The European Union and the IMF are urging a coupon of 2%, while bondholders, who will take a voluntary writedown of at least 50% on existing Greek debt, want a higher coupon — reportedly 4%.

IIF chief Charles Dallara has cautioned that the stability of Europe, not just Greece, is at stake in the discussions, and he urged a quick deal.